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>> who came to the states with a great immigration wave of 1848. henry goldman revolutionize the financial world by a inventing modern financing with commerce and industry known today as the ipo and then when there were

due -- no e-mail or pcs or adding machines or internet when business was developed slowly with imagination and brains we became the first investment banker. that yet guarding his private life so jealously he remained an enigma to the thousands of people's lives he influenced and in rich and many traders who worked at the firm today cannot even place his name. he was responsible for the initial underwriting of more than 50 of the country's most successful publicly owned corporations including general cigar, sears roebuck , the underwood typewriter company, a department stores stores, woolworth's, b.f.goo drich, and the brown shoe company. all of their boards of

directors without accepting recommends. also a collector of major renaissance art also with musicians and a sponsor and friend of groundbreaking physicist among the albert einstein before and after a world war i rescuing many jews from nazi germany in the 1930's. remarkably many of the achievements occurred while losing his sight. was invited to join goldman sachs, 10 years since his father marcus dropped out of harvard after failing eyesight and hired mr. leeza

has spent as his assistant perk up marcus and sam's father had been frail since the school-- in germany. this is the second marriage that had taken place between sons and daughters of the two families. they anticipated if anybody would be offered the job, it would be he. disappointed, he decided to except an offer to join a firm as a sales man. as it turns out it was in education far beyond that one may have been obtained at harvard. for the first time to see the mom and pop stores the little machine shops and perhaps learn to do visualize the financial structure that would

transforms them into the building blocks of the economy. a year and a half later marcus goldman had accrued over $100,000 of capital turning out over 30 million per year and was so overloaded with work and please with the performance, he offered to let him by a partnership for $25,000. for then the business was known as goldman sachs and over 50 years all members were part of the interbreed family is. assets were tied up in a firm providing working capital as well as savings. marcus also agreed he could withdraw money from the firm without making a formal petition to the senior partners and all needed to be an agreement before making investments on behalf of the firm.

so we remained until goldman went public 100 years later and totally changed its face. when henry joined the firm he was named a junior partner rising to the position of the senior partner and adding insult to injury hiring his three sons with brokers and soon after words he made them junior partners this infuriated hendry who was now married and the father of three small children. he viewed the imbalance of power of money as then just a belief he held fast until markets by then became the co-leader with his brother-in-law. by that time he was 43. there were signs of trouble brewing from then on and. because they were polar opposites in every way in could not reach agreement on

anything except the preservation of the firm's good name. rather than having civilized conversations in the attempt to reconcile the differences, there were constant heated arguments, name-calling and shouting matches all day long. it is surprising the firm survived let alone that it thrives. but it did with saddam frequently traveling to london seeking to expand goldman trade and currency exchange and henry becoming an extremely successful speculator in the railroad bonds. so successful, he wanted goldman sachs to underwrite new railroads. they never foresaw that they had the virtual lock would resent the intrusion into their territory and offered to buy out his investments instead. and julias, the goldman sachs attorney recommended

henry investigate other avenues for the new business and avoid rocking the boat. the firm hall of false three o him a vote of thanks after henry identified the groundbreaking new investment opportunity in this small manufacturers and retailers turning to wall street for capital to expand. he persuaded his good friend what that was the leading cotton broker in turn them into a first publicly owned companies in america. goldman sachs would come up with the clients and lehman would divert the fortune from the commodities market to provide the money the potential was and then sanded to house is would share the profit 50/50. they sealed the deal with a handshake. once the agreement was

finalized they still have to figure out how to price the new securities. henry thought they should be valued by the earning power the rate at which they turn over inventory and generated cash. rather than the physical assets like steel and railway but this was entirely new concept and probably the only way start of companies matured on material holdings went to the uninitiated public and henry called it the price-earnings ratio and determined by dividing the closing market price by its per-share earnings. and due to the ascendance of rapid-fire computer-driven trading and the relevance of the p-e ratio it was challenged as leverage long

and short-term debt prefer a stock and cash flow figured into the forecast for the future. in 19 '04 the largest independent tobacco company in the country came to goldman sachs for a bridge loan of $20,000,000.2 build more factories and in large their sales and was decided to make it guinea pigs. them less than what our he sketched out on the pad the basic elements of issuing common and preferred stock. marketing took a little more time and a great deal of the preferred was sold in europe then subsequently resold to

american subscribers. gold mine and the mayor brothers retained 5% as a commission. the next project was sears roebuck. julius was turning 50 million over prayer the catalog business was in the midst of constructive the largest building in the world 1 million square feet on chicago's west side. it was originally funded by goldman sachs commercial paper and now they came back to goldman for a $5 million loan. but henry had different ideas for car he recommended selling shares on the open market making it the first publicly owned retail operation in existence. mounting a $10 million profit turning goldman sachs and seers into a household name.

during the next 11 years old men and lehman -- goldman and even brothers were companies but what would excite them most was the studebaker which rican the first automobile manufacturer owned by the public with the overline bankers became the hot issues everybody wanted between the two brothers in lot to deteriorate and to spread amongst their families they came to a head in 1914 when war broke out in europe said the these horror sabbatical a pro ally although henry who had admired the culture thought

otherwise and spoke vehemently against the british and french who he felt which he felt to maintain net commercial supremacy in hearing the bylaws goldman sachs refrained from purchase abating is in the anglo-french bond drive one of only two wall street houses to do so. the other was -- castigating the firm it became up pariah in england when a london press quoted henry's remarks and warned goldman sachs was in danger of being blacklisted, henry realized he was not just voicing his personal opinion by placing the firm's future in jeopardy and in 1917 he tendered his resignation and cleared out his desk taking 15 corporate clients whose fortune he had been

responsible along with his considerable share of the firm's funds. although professing relief and reiterating how one bereday shares they were by the approach german stance come month the sacs family never for gave him. henry and sam never spoke again nor did his sister the breezy -- leeza they told everybody he had withdrawn from the royal the finance and living in disillusioned retirement in germany which never could be further from the truth when every trace of him was taken from goldman sachs records almost 100 years had passed i tried to interview members of the sachs family some professed that they did not even know they were related to the goldman family others rejected their roots with judaism along with their family tree one great

grandniece still harbored such ill will against henry sheikh up diskette -- scrapbook of newspaper clippings chronicling tidbits of his daily life would be paid the domestics to fiat he gave out a einstein won his 50th birthday. she also referred to recite marching in a crowed german parade at the beginning of world war i which was unable to be substantiated. in actuality, henry was surprisingly relief to be relief from the pandora's box of the office and spend his time and other interest the dear to his art. he began to indulge for medicis not-- collections it unlike the collectors of the

day low-interest of buying the auction gallery flavor of the month and once he made a purchase it was his for keeps and displayed in the fifth avenue department to be a joint and admired by his friends and family. point*. he felt the emotional and intellectual tae endosome thrilled by the major acquisition the portrait of bartholomew he could not sleep for nights on end donatello, van dyke, the average yearly treasured as small inkwell by the 16th century sculptor which she kept on his desk to his dying day. also choosing the story of the convoluted relationship between goldman and his dear

friend who was the most influential art dealer and the foremost authority on is on its art by a cheerleading works of art to the state of his pocket book. of course, there was no buying or selling of fine art when the trade -- treaty had been signed the first party was to help resurrect the german economy which was completely wrecked byetta harsher create -- recreation term enraged rampant and henry campaigned vigorously against wall street bankers urging to invest in industries and a construction the averse so successful that the president gave him honorary tremendous citizenship also

backfired with small businesses which were virtually wiped off the map. they were among hitler's most vocal supporters in the years to come. in 1924 henry made the acquaintance of alberta einstein at one each banquet of bankers held in berlin. goldman and einstein hit it off famously and began a lifelong friendship and henry was fascinated by the professors descriptions of experiments of quantum mechanics the future nobel prize winner and some of the students included oppenheimer the subject was very controversial and einstein was unconvinced of the validity. nevertheless goldman gave him over $1,000 to continue his research which resulted

in an atomic fusion 20 years later and in 1931 when einstein concluded he could no longer liv in the hostile of atmosphere of nazi germany accepted a post at the institute for learning in princeton but after one year feelings the press of the institute was enforcing intolerable demands, the professor threatened to the eighth. henry attempted to intercede that the efforts became pointless as nazism's bread and heroes ruling elder traded options for einstein. henry was still convinced the nazis were just a passing phase until the night 40,000 ordinary citizens luted libraries and homes and tossed armload of

books into a huge bonfire facing the berlin opera house. costs -- meanwhile as the world turned totally dark henry became more deeply involved in the wyss passion for music and attended concerts three times per week and were great fans of the opera. of the social circle grew to include such ordinaries as toscanini, and the distinguished violinist and when ending the first concert at carnegie hall telling the youngster was plain and abroad instrument, he decided on the spot to make the best even better in presented the

boy with a stradivarius. just weeks after black friday when most three suffer the great collapse but henry's resources had not been significantly affected. thinks to hers at -- his conservative investment philosophy. my friends commented on the magnanimity and responded i'd like to make money but i like even more to see that money used to be a better place. not until 1932 when it was his last visit to germany that he realized how much things have changed. brownshirts wearing swastikas were posted outside the jewish owned stores and jewish pharmacies were forced to close in the civil liberties of jews and liberals were totally eliminated. old friends and stopped associating with him and is

by the fact he carried the white came of a blind man he was pushed and shoved in the street. anti-semitism made him come to terms with his own feelings of judaism in had this is issued with himself for the formalized religion since he was a little boy now began to question the moral obligation that goes hand-in-hand and the relevant it created. rating hundreds of letters too influential contacts seeking immigration papers scientists dollars impositions artist and authors attempting to flee the impending holocaust and encourage other jewish german bankers to get things

done too do the same. his wife is still remembered as a phenomenal fund-raiser for the cause collecting thousands of dollars by personally appealing to the lives of wealthy will streeters. henry died in his fifth avenue apartment april 1937. surrounded by the paintings and sculptures he loved so well. leading instructions for his heirs to destroy his private papers. he had no regrets and had no sympathy for the sachs who lost over $10 million of the great depression because they foolishly followed in the footsteps of others and fail to do their homework. he can only wonder and hope that goldman sachs, his father secretion and the firm he had transformed would reap -- regain its lofty height someday and reestablished the culture of which it had originally identified.

he certainly never would have recognized it as it exists today. huge publicly held a bank holding company which was served by fraud by the second find half-million dollars for its complicity in the recent crash as well as paying 31 million to the uk financial services authority saying that the company made of the stake in regulatory disclosures about london traders as simply

goldman although no goldman has worked there since 1917 and of likely that ever would ever again to -- . [applause] i would be happy to receive questions from the floor if you have some. >> are you familiar with a book that is out and can you talk about how that is related to you and how it was growing up as the granddaughter of mr. goldman? >> a very privileged life we were brought up as ordinary kids. we did not flash our wealth my schoolmates included a

vanderbilt and others that i thought were really rich and never thought of ourselves as being for it -- rich. but most of which leaned on the research on the oral history of walter sachs, the son of samuel and i also went to the archives at boston university at columbia and learned a lot of information from that. it is an interesting and quite different story than the one i have told. does that answer your question? >> sorts of. [laughter] >> if there is no more questions we will acknowledge something that

happened. in june has donated her book to the rotary club at our private library and i have a presentation. what of the things that the rotary does is to eliminate polio in the world and our polio plus program collects funds and we have been instrumental to eliminating polio from all of the country is in the world except for small countries we are still working on but in recognition of your speech today we will make a donation to the polio plus programs and here is a clap to commemorate. [applause] >> very special. thing keogh teeeleven. to find out more

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rusco i have very clear sense of the pain we can inflict on another as human beings, but i also know that that is not the essence of our being and that we respond with what is horrific because carter is now the essence of our being. >> are you also a reference to the president of south africa? >> i am a resident of alexandria virginia. >> how long have you lived in the state's? >> more than 20 years except i'm only 23. [laughter] >> do you miss? >> yes i do, a lot in my role as the